CSL Ltd (ASX: CSL) shares closed around 1% higher on Thursday afternoon, at $125.53 a piece.
The increase continues the biotech company's strong rally over the past month or so.
The shares have now climbed around 26% over the past month, and have now rebounded 36% from a 10-year low in early June.
It's good news for investors, but there is still some way to go before the stock recoups the huge losses it shed this year.
Even after the rebound, CSL shares are still down 27% for the year-to-date, and are 48% lower than 12 months ago.
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Why are CSL shares finally rebounding?
It looks like investors have finally recognised that the ASX healthcare share reached a price point well below fair value.
After such a huge share price drop in early 2026, it looks like even nervous investors now consider that the bad news and earnings outlook downgrade is priced in.
Momentum has picked up pace recently as bargain-hunting investors take advantage of opportunities in oversold stocks.
But can it keep going?
Can they keep climbing higher?
I think the latest increase shows that investors are now looking forward to whether management can improve operations, and if so, what CSL's FY27 and FY28 earnings might look like.
I think there is a lot of potential too. After all, CSL is operating in a high-growth market, and its blood plasma division dominates the market for rare blood disorders and immunoglobulin products.
Global demand for plasma therapies is strong and growing, too. There is recurring demand and limited competition, which makes CSL well-placed to carve out a significant portion of the market.
I think that once CSL is able to turn around its financials, investor confidence will follow.
Here's what the experts tip for CSL shares
Market sentiment for CSL shares looks to have shifted slightly, and analysts are now divided about how much further they can climb.
Although they do agree there will be some element of upside ahead.
Market Index data shows most brokers (seven out of nine) have a hold rating on CSL shares. However, the $131.48 target price implies a potential 4% upside, at the time of writing.
TradingView data also shows that, of 18 analysts, 10 have a hold rating and another eight have a buy or strong buy rating on the stock.
The average $140.15 target price implies a potential 11% upside at the time of writing. However, some analysts tip the ASX healthcare shares to fall around 17% to $104.55, while others forecast CSL shares to jump around 58% higher to $199.68, at the time of writing.
Morgans is one optimistic broker. It has a buy rating with a price target of $147.59.
The team at Macquarie is more cautious. The broker has a lower price target of $114 and a neutral stance. It cites uncertainty across CSL's core plasma and albumin businesses, as well as ongoing competitive pressures.
